The ground continues to shift beneath the insurance industry, thanks to the surge of American consumers who began flooding the market in 2019. More than ever, these consumers are shopping online, and the faster than expected shift to digital sent some insurers scrambling. Case in point: Online comparison shopping for auto insurance nearly doubled from 2019 to 2021, and online shopping for home insurance is up 30% from 2019. Auto claim-severity remains high, with frequency creeping up following pandemic lows. Meanwhile, insurer profit surpluses are at record highs — an unanticipated result of the race to the bottom in auto insurance profitability and inflation driving up replacement and repair costs. Despite this, insurers are optimistic about top-line growth. A recent survey by Deloitte reported that 96% of U.S. insurance executives are accelerating digital transformation initiatives across the organization. Their top priorities are efficiency and customer experience. The bottom line: The pandemic contributed to a fundamental reshaping of our industry. Among the factors driving new and unexpected insurance needs: |

• Lockdown orders that led to unemployment;
• Increased and ongoing remote work;
• Migration away from urban centers;
• Improved consumer technology capabilities; and
• Increasing preference for online purchases.

Furthering the digital explosion was a locked-down workforce where even tech-reluctant Americans were forced to work online, and younger, "digital-native" consumers entered the insurance market. Millions of consumers impacted by these events began their insurance search journey online. |

Insurance marketing response

Increased demand tested the digital capabilities of insurance companies everywhere. Consumers want to hear from insurance providers, but only at the right time, and with a focused message that reflects the current stage of their buying journey. Among insurance providers who understand and act on this information, we see a focus on smarter data collection that prioritizes privacy and security and integrates data organization for deployment across an omnichannel approach. Insurance providers committed to making this transformation are cued at the optimal time to engage with consumers, and these cues tell marketers the optimal channels and messages with which to communicate. A recent Forrester study suggests companies that utilize data enhancements and insights on highly considered consumer purchase journeys can better monitor and act on consumer behavior at all stages of the consumer journey. With the right data and insights, marketers can confidently identify when customers or prospects are in market and execute more profitable marketing campaigns. Simply put, the right data tells marketers who to market to, when is the best time, and how to best reach the consumer. |

Evolving strategies

Consumers' wants and needs are vastly different. Yet over the past two years, it has become increasingly clear consumers are searching for personalized insurance advice and a trusted gateway of information to help them make the most informed decisions. A September Capco survey of nearly 14,000 consumers across 13 global markets found six out of 10 respondents (57%) want a better online experience from their insurer. And almost half of U.S. consumer respondents ages 18-24 and 40% of 25-34-year-olds said they would share their home smart device data with an insurer in exchange for greater personalization. We see that insurance marketers leveraging behavior data to meet the consumer where they truly are in their journey can better provide consumers expert advice and the best offers at the right time. To do this, innovative marketers are turning to companies that specialize in behavior and insights to help enrich and organize their first-party customer data. Enhancing first-party data allows marketers to connect data points such as name, contact info, or location, with complex consumer behavior creating deep and distinct views of consumer shopping behaviors. Behavioral data completes the view of the customer by filling in their journey from beginning to end — how they arrived at certain web pages or products, and how they interact with your brand. It helps identify trends that indicate individuals who are most likely to complete a purchase. The Forrester study reports that insurers who utilize tools to better understand consumer-journey insights improve retention rates, increase customer engagement and consistently close new business. The investment can also result in nearly 200% return. The enhanced insurance-consumer targeting capabilities outlined in the slideshow above result in greater operational efficiency and cost savings, without wasting efforts on consumers who are not shopping. Instead, marketing efforts focus on well-timed consumer engagement, whether through a relevant email or a courtesy call from a local agent at just the right time. These technologies and know-how aren't changing our industry, they're simply enhancing the original value proposition — to help consumers make informed decisions about their future and offer peace of mind. The opportunity for growth is out there if insurance providers can organize, segment, tailor and deploy data and technology to smartly engage new prospects, cross-sell existing customers, and most importantly, retain the existing policyholders. Jeff Piotrowski is the insurance market leader at Jornaya, a Verisk business and leading provider of consumer behavioral data and insights headquartered in Conshohocken, PA. An expert in insurance lead generation and acquisition program strategies, Jeff works with insurance providers of all sizes across P&C, Life and Health, helping them deploy data to optimize their digital marketing efforts for policy growth and retention. He is a member of the Society for Insurance Research, the Inter-Company Marketing Group and the Life Insurance Direct Marketing Association. Jeff can be reached at [email protected]. See also: |

• Insurance's digital acceleration & the customer experience
• The science behind insurance shopping
• How insurers can keep customers happy when moving online

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